Blitz Bureau
NEW DELHI: Gold and silver prices continued to rise for a second consecutive session on February 19 — amid rise in geopolitical tensions, cautiousness of the US Federal Reserve stand and withdrawal of additional margins on gold and silver futures in domestic market. The US Defence Department has sent additional weaponry to the Middle East such as warships, air defences and submarines, in preparation for a possible military strike on Iran if negotiations fail, according to multiple reports.
MCX gold April futures gained 0.22 per cent to Rs 1,56,100 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures gained 0.29 per cent to Rs 2,44,971 per kg.
The MCX and the NSE have withdrawn the additional margin of 3 per cent levied in Gold Futures and 7 per cent levied in Silver Futures in all contracts of all variants, with effect from February 19. The removal of additional margins is expected to invite higher speculative participation in the market and increase intraday activity, pushing prices higher.
Further, thin liquidity because of Lunar New Year holidays in Mainland China, and several other Asian markets also acted as headwinds on the rally, market participants said. In international markets, gold prices hovered around $5,000, while dip buying ahead of the Federal Reserve meeting minutes was seen, while mixed economic data kept the US Fed officials’ opinion on monetary policy divided, said Manav Modi, commodities analyst, Motilal Oswal Financial services Ltd.
